As China advances on its path toward carbon neutrality, the cement industry remains a key sector for emission reductions. Although construction activity has declined since 2022, the Chinese cement sector continues to generate more CO₂ annually than most countries, and contributing to approximately 12–13% of China’s national CO₂ output. Recognising the critical role of cement production in China’s climate goals, the Sino-German Cooperation on Climate Change – NDC Implementation (NDCI) project collaborates with the Chinese provinces of Sichuan and Anhui specifically to decarbonise this sector.
As part of this cooperation, the project convened key stakeholders from Sichuan and Anhui provinces in Chengdu from 4 to 6 June 2025 for expert exchanges on decarbonisation efforts in the cement sector. Organised jointly by GIZ, the Sichuan Academy of Environmental Policy and Planning, and the National Center for Climate Change Strategy and International Cooperation (NCSC), the workshop provided a platform for policy dialogue, technical knowledge exchange, and the forging of partnerships. The main objective of the workshop was to present and discuss provincial research on cement decarbonization pathways and to present the forthcoming international study “Decarbonizing cement: A review of EU and German policies and regulations, with recommendations for China”.
Strategic objectives for provincial mitigation
To develop strategies and implementation plans appropriate for mitigating emissions as well as facilitating green and low-carbon development of the cement industry, representatives from the Sichuan Department of Ecology and Environment underscored the importance of addressing emissions from cement production at the provincial level. Both Sichuan and Anhui are home to major industrial bases that heavily rely on coal for clinker production, with Anhui alone reporting that 95% of clinker processes depend on coal.
The Sichuan Academy of Environmental Policy and Planning presented a detailed pathway for reducing emissions at the provincial level within the cement sector, emphasizing integrated planning through approaches such as aligning industrial development with climate goals including, among others, the co-processing of waste as a partial alternative fuel in cement production, and implementing carbon-efficient technologies that lower emissions per ton of cement produced.
While most emissions result from limestone calcination and fuel combustion for heat, 5–10% of a cement plant’s CO₂ output comes from electricity use. Wu Lei from the Anhui Provincial Academy of Eco-Environmental Science Research highlighted her region’s challenges in reducing these emissions due to limited potential for solar and wind energy, stressing the need for innovative emission control policies tailored to local resource conditions
Exchanging European and local best practices and approaches
The climate science and policy advisory Climate Analytics, which accompanies the project scientifically, provided an overview of EU and German regulatory frameworks, highlighting how market-based mechanisms, emissions trading systems, and performance-based incentives have supported a steady transition of the European cement industry away from fossil fuels. Policy recommendations for China’s cement sector included the introduction of carbon pricing, incentives for low-carbon materials, and clear regulatory mandates for industrial retrofitting. The discussions also underscored the importance of circular economy strategies, particularly the role of waste management in enabling a “defossilised” cement industry by utilizing municipal and industrial waste in cement kilns as alternative fuels. These suggestions were well-received by the Chinese participants and laid the groundwork for a productive exchange on how international best practices can be adapted to China’s specific context.
On the sidelines of the workshop, the participants undertook a site visit to Lafarge Cement Co., Ltd. in Dujiangyan, one of Sichuan’s leading cement plants where the expert participants discussed ongoing efforts to reduce emissions through process optimization and fuel substitution and the latest progress were showcased. The exchange provided concrete insights into practical decarbonization measures at the plant level.
The “China-Europe Emission Reduction Solutions” (CHEERS)” project, jointly funded by China’s Ministry of Science and Technology and the European Union’s Horizon 2020 program, constructed the world’s largest Chemical Looping Combustion (CLC) pilot demonstration facility. Participants visited the chemical chain combustion carbon capture demonstration facility which provided firsthand insights into how technologies and industrial innovation are being applied to achieve tangible emission reductions in the cement and energy sectors.
Toward effective implementation
Participants from research institutes, government departments, and industry agreed that while technical solutions are maturing, Clear policies, regulations, institutional coordination, and accountability mechanisms are needed to ensure that solutions are adopted and scaled effectively. Financial and non-financial incentives such as subsidies, carbon pricing or tax breaks are essential to motivate action from both public and private actors.
As such, the workshop reiterated the need for clear roles and responsibilities at provincial levels, capacity-building programs, and a unified monitoring framework. The Deputy Director of Sichuan Academy of Environmental Policy and Planning, CHEN Mingyang, emphasised the value of continuous international cooperation.
The workshop is part of a broader series under the IKI-supported NDCI project, which continues to foster tangible subnational action aligned with China’s decarbonisation goals. As part of its cooperation in the cement sector, GIZ has previously also organised a study tour to Germany and Belgium to facilitate exchange between partners from Chinese provinces and their European peers, held an expert exchange to discuss the necessary policy and regulatory frameworks, and conducted a series of practical trainings on how to apply the Low Emissions Analysis Platform (LEAP) model as a tool for scenario analysis.
Looking ahead
The momentum from this exchange, coupled with ongoing collaboration between German and Chinese experts, contributes to advancing the decarbonisation of China’s cement sector. By integrating waste management strategies and targeted policy interventions, provinces like Sichuan and Anhui are committing to chart pathways toward low-carbon industrial development. Next steps include the publication of the international study and the provincial studies (“Carbon Emission Reduction Policy for the Cement Industry in Anhui Province” as well as “Implementation plan for the reduction of pollution and carbon emissions in the cement industry in Sichuan”), the finalization of local research and subsequently the submission to local Department of Ecology and Environment to feed the conclusions into provincial policy-making process in support of NDC implementation on subnational level.
This activity is part of the Sino-German Cooperation on Climate Change – NDC implementation project, a bilateral cooperation project commissioned by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) as part of the International Climate Initiative (IKI), cooperating with the Ministry of Ecology and Environment of the People’s Republic of China (MEE) and jointly implemented by GIZ and China’s National Centre for Climate Change Strategy and International Cooperation (NCSC).
